Houlihan Lokey to Acquire Waller Helms Advisors

Rhea-AI Summary

Houlihan Lokey (NYSE:HLI) has agreed to acquire Waller Helms Advisors, an independent advisory firm specializing in insurance and wealth management sectors. The acquisition, expected to complete by December 31, 2024, will double the size of Houlihan Lokey's Financial Services Group. Waller Helms, founded in 2014, has advised on over 230 transactions worth more than $40 billion. The deal will add nearly 50 financial professionals, including 13 Managing Directors, to Houlihan Lokey's team. James Anderson, CEO of Waller Helms, will join as Global Co-Head of the Financial Services Group. The combined entity will rank as the No. 1 advisor for global M&A transactions in 2023 in the insurance, asset management, and financial services sectors (excluding depositories).

Positive

• Acquisition doubles the size of Houlihan Lokey's Financial Services Group
• Adds nearly 50 financial professionals, including 13 Managing Directors
• Enhances coverage capabilities in insurance and wealth management sectors
• Combined entity ranks as No. 1 advisor for global M&A transactions in key financial sectors
• Waller Helms has advised on over 230 transactions worth more than $40 billion

Negative

• None.

Insights

Financial Analyst

The acquisition of Waller Helms Advisors by Houlihan Lokey is a strategic move that significantly enhances Houlihan Lokey's position in the financial services sector. This deal will double the size of Houlihan Lokey's Financial Services Group, making it the top advisor for global M&A transactions in insurance, asset management and financial services (excluding depositories) in 2023.

The addition of Waller Helms' expertise in insurance and wealth management sectors will likely lead to increased revenue streams and market share for Houlihan Lokey. With Waller Helms' track record of advising on over 230 transactions worth $40 billion, this acquisition positions Houlihan Lokey for substantial growth in these lucrative sectors.

Investors should view this as a positive development for Houlihan Lokey, as it strengthens the company's competitive position and expands its service offerings. The deal is expected to close by year-end, potentially impacting Houlihan Lokey's financial performance in 2025.

Investment Banking Expert

This acquisition is a game-changer for Houlihan Lokey in the financial services advisory space. By integrating Waller Helms' team of nearly 50 professionals, including 13 Managing Directors, Houlihan Lokey is significantly expanding its talent pool and sector expertise.

The deal aligns with the industry trend of consolidation among advisory firms to create more comprehensive service offerings. This move will likely enhance Houlihan Lokey's ability to cross-sell services and win larger mandates, potentially leading to increased deal flow and higher average transaction values.

The cultural compatibility emphasized by both parties is important for successful integration and retention of key talent. This aspect, combined with the expanded geographic presence in Chicago, New York, Miami and Atlanta, positions Houlihan Lokey for stronger client relationships and improved deal execution capabilities in the insurance and wealth management sectors.

Market Research Analyst

The acquisition of Waller Helms by Houlihan Lokey reflects the growing importance of specialized expertise in the financial services sector. The insurance and wealth management industries are experiencing significant consolidation and disruption, driven by factors such as technological advancements, changing consumer behaviors and regulatory pressures.

This strategic move positions Houlihan Lokey to capitalize on these trends and capture a larger share of advisory fees in these high-value sectors. The combined entity's ranking as the No. 1 advisor in global M&A transactions for insurance, asset management and financial services (excluding depositories) in 2023 is a strong indicator of its market dominance.

Investors should note that this acquisition could lead to increased deal flow and potentially higher profit margins for Houlihan Lokey, as specialized advisory services often command premium fees. The expanded capabilities may also attract larger, more complex deals, further enhancing the firm's reputation and financial performance.

Acquisition Substantially Enhances Firm’s Coverage Capabilities in Insurance and Wealth Management Sectors, Doubling Size of Financial Services Group

NEW YORK & CHICAGO--(BUSINESS WIRE)-- Houlihan Lokey, Inc. (NYSE:HLI), the global investment bank, has agreed to acquire Waller Helms Advisors (Waller Helms), an independent advisory firm that provides investment banking services to clients in the insurance and wealth management sectors. The transaction, signed on August 6, 2024, confirms Houlihan Lokey as the premier investment banking advisor in these sectors and underlines the firm’s leadership across the global financial services sector. The deal is expected to be completed before December 31, 2024, following regulatory approvals.

Founded in 2014, Chicago-based Waller Helms provides advisory services in connection with mergers and acquisitions, private capital raising, and valuation services, advising clients primarily in the insurance and wealth management sectors. Since its founding, the firm has advised on more than 230 transactions with over $40 billion of aggregate value. Recent notable transactions include the sale of Century Equity Partners’ portfolio company, DOXA Insurance, to Goldman Sachs Asset Management; The Mather Group’s recapitalization by The Vistria Group; and BenefitMall’s sale to Truist Financial Corporation (NYSE:TFC) on behalf of the Carlyle Group (NASDAQ:CG).

Waller Helms’ nearly 50 financial professionals, including 13 Managing Directors, will join Houlihan Lokey’s Financial Services Group. James Anderson, Chief Executive Officer of Waller Helms, will join as a Managing Director and Global Co-Head of the Financial Services Group alongside Jeffrey Levine, Global Head of Financial Services. In addition, John Waller and David Helms, Co-Founders of Waller Helms, will also join as Managing Directors to further support and enhance the firm’s coverage efforts for its clients across the financial services sector. The acquisition adds financial professionals in Chicago, New York, Miami, and the greater Atlanta area.

“The addition of this talented group of bankers is highly complementary to our Financial Services platform, adding meaningfully to our current coverage capabilities across numerous subsectors within insurance and wealth management. On a combined basis, the Group is now the number one advisor to clients in the insurance and wealth management sectors. We are delighted that the Waller Helms team is joining Houlihan Lokey and I look forward to partnering with James to lead the new team, now comprising nearly one hundred financial professionals,” said Mr. Levine.

On a pro forma basis, and according to data from LSEG, the new combined group now ranks as the No. 1 advisor for all global M&A transactions in 2023 in the insurance sector; the asset management sector, including wealth management; and the financial services sector, excluding depositories.

“As we discussed a possible combination, it became clear that Houlihan Lokey shares our dedication to deep sector expertise and more importantly, a fierce dedication to client success,” said Mr. Anderson. “It is this cultural compatibility and client-first ethos that makes this combination so compelling, and we’re excited to work with our new colleagues at Houlihan Lokey and continue delivering superior outcomes to clients.”

“The addition of the Waller Helms team is exemplary of our desire to provide our clients with the greatest depth of sector expertise in the midcap space, alongside our market-leading private capital expertise, extensive relationships among financial sponsors, and other services,” said Larry DeAngelo, Global Co-Head of Corporate Finance.

“Over the past ten years, we have built a talented and passionate team and have had the honor to assist incredible, best-in-class clients on industry-leading transactions. Houlihan Lokey is the ideal home for our team and clients to thrive for years to come,” said Mr. Waller.

“The strength of Houlihan Lokey’s global platform and our shared philosophies on collaboration and attracting and developing the best talent in the industry has us truly excited about our collective opportunity,” said Mr. Helms.

“We have known the Waller Helms team for many years, and their long track record of success in financial services advisory is truly impressive. We look forward to introducing our new partners to our global client base as we continue to grow and enhance our service offering in Corporate Finance,” said Jay Novak, Global Co-Head of Corporate Finance.

About Houlihan Lokey

Houlihan Lokey, Inc. (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and financial and valuation advisory. Houlihan Lokey serves corporations, institutions, and governments worldwide with offices in the Americas, Europe, the Middle East, and the Asia-Pacific region. Independent advice and intellectual rigor are hallmarks of the firm’s commitment to client success across its advisory services. The firm is the No. 1 investment bank for all global M&A transactions, the No. 1 M&A advisor for the past nine consecutive years in the U.S., the No. 1 global restructuring advisor for the past ten consecutive years, and the No. 1 global M&A fairness opinion advisor over the past 25 years, all based on number of transactions and according to data provided by LSEG (formerly Refinitiv).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240808237246/en/

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Source: Houlihan Lokey, Inc.

FAQ

When is Houlihan Lokey's acquisition of Waller Helms Advisors expected to complete?

The acquisition of Waller Helms Advisors by Houlihan Lokey (NYSE:HLI) is expected to be completed before December 31, 2024, subject to regulatory approvals.

How many transactions has Waller Helms Advisors advised on since its founding?

Since its founding in 2014, Waller Helms Advisors has advised on more than 230 transactions with over $40 billion of aggregate value.

What will be the ranking of the combined Houlihan Lokey and Waller Helms entity in the financial services sector?

The combined entity will rank as the No. 1 advisor for global M&A transactions in 2023 in the insurance sector, asset management sector (including wealth management), and financial services sector (excluding depositories).

How many financial professionals from Waller Helms will join Houlihan Lokey (HLI)?

Nearly 50 financial professionals from Waller Helms, including 13 Managing Directors, will join Houlihan Lokey's Financial Services Group.